Investment Property Cash-Out Refinance LTV Limits: Conventional, Non-QM, and Portfolio Caps in 2026

Investment property cash-out refinances are among the most heavily restricted transactions in mortgage lending. LTV caps are lower than purchase, FICO requirements are stricter, and the number of financed properties matters. Getting the LTV right at intake saves a deal that would otherwise be repriced or restructured at underwriting.

Conventional Investment Property Cash-Out Limits

• ✦1 unit investment property: maximum 75% LTV for cash-out under Fannie Mae guidelines
• ✦2-4 unit investment property: maximum 70% LTV for cash-out
• ✦Minimum FICO 680 for LTV up to 75% on 1-unit; minimum 720 for 2-4 unit cash-out
• ✦Maximum 10 financed properties; borrowers with 7-10 financed properties have more restrictive LTV and FICO requirements
• ✦6-month seasoning required: the borrower must have owned the property for at least 6 months before a cash-out refinance (longer if originally purchased with non-arm's-length terms)

DSCR Cash-Out Limits

DSCR lenders typically allow 75% LTV for cash-out on single-family investment properties and 70% for 2-4 unit properties. Some investors go to 80% for cash-out on 1-unit DSCR deals at FICO 700 or above with a DSCR of 1.25x or higher. The DSCR must still be calculated on the new loan amount including the cash-out proceeds' effect on the monthly payment. Most DSCR investors require 6-12 months of ownership seasoning before a cash-out refinance; some require the property to have been purchased (not refi'd) at that ownership point.

Portfolio Lender Options Above 75% LTV

Portfolio lenders occasionally offer investment property cash-out above 75% LTV on an exception basis. This typically requires strong overall borrower profile (FICO 740+, significant liquid reserves, multiple properties with clean payment history), a strong income case, and a property in a primary market. Rates for exception LTV deals are priced individually rather than from a grid. Hard money lenders offer investment property cash-out at 70-75% ARV for value-add properties, but these are bridge products, not permanent financing.